What is the value of a new cell tower?

Posted February 13, 2014 by admin

If you are visiting this site chances are good that you already have a cell site lease or someone recently has knocked on your door asking to locate a wireless tower or carrier on your property. One of the common questions we receive is “What is the going rate for a new cell tower?

Let’s focus on a few things. Your site is or will be part of a network of other sites in the area. The reason why the site acquisition company has knocked on your door is they are hoping that you can fill-in a gap or add to the coverage in the area. So there is a good chance you will be looking at a cell site whether it’s on your property or the neighbor’s property. The first part of the value of the location is based on how that site fits within that network.

The second issue to understand is the availability of alternative sites within the area. Are you in an area with easy zoning laws and similar property types? Maybe you are in a residential area with the only non-residential property for miles in any direction. If the first question was yes, than you might be limited on value and lease rates slightly. If you have the only property that fits the criteria for a cell site than you might have a better chance to received a higher rent from your location.

Third issue to take into consideration is the current rental rates for similar cell towers in the area. Remember, this is real estate at the end of the day. If you are asking for a rent amount that is 100% higher than the other cell sites in your area chances are the tower company or site acquisition group will be doing everything possible to find another site.

Lastly, how easy is it to get and build on the property? Is the location close to the road and easy to access once the tower is build? Maybe there is expensive tree removal and site prep work needed before they can start the tower build. The wireless carrier or tower company will take all this into consideration.

At Cell Site Capital we take all of this into consideration when evaluating your lease. Whether you are trying to renegotiate a expiring lease, asked to sign an amendment by the tower company or have been approach for a new cell site location give us a call. We use local cell site data and locations to generate the best value possible of you.

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